Advisory Opinion: 1044

Year Issued: 1986

RPC(s): RPC 1.8(a); 1.8(j)

Subject: Conflict of interest; receipt of deed of trust to secure future fees

[A law firm received a deed of trust and promissory note to secure legal fees for future representation. The deed of trust was in foreclosure and the grantor had declared bankruptcy.] The Committee was of the opinion that if the assignment of the promissory note and deed of trust gave you solely a security interest in the property, rather than a proprietary interest, there would be no conflict with RPC 1.8(j). However, if you did acquire a proprietary interest in the property by the assignment, it would appear to violate that rule. The Committee was further of the opinion that, if it were a security interest, you must then comply with the requirements of RPC 1.8(a).

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.